Shennan Electric Institute Research Key Shorthand

- Aug 17, 2018-

1. The global PCB industry showed a trend of fluctuations in 2000 and 2008. How does the company view the future development of domestic PCB enterprises?PCB industry transfer effect has been obvious in recent years, and domestic PCB manufacturers have been growing rapidly. At present, China's PCB output value has accounted for more than half of global output value, and it is estimated that there is still room for development in the future.

2. From the perspective of competition pattern, the core competitiveness of domestic PCB manufacturers and the change of industry concentration in the future:

(1) in terms of the industry as a whole, the rapid increase in domestic production value in the past was mainly dominated by cost factors, among which the demographic dividend was one of the biggest drivers.Specific to domestic enterprises, due to differences in product positioning, competitive advantages are also different, can not be generalized.

(2) at present, PCB enterprises are still relatively scattered, but there are some noteworthy phenomena, such as frequent merger and acquisition, expansion of production by large enterprises, and pressure from strict environmental protection on small enterprises.Specific trends remain to be seen.

3. The products and progress of the company's two fund-raising projects are respectively oriented: nantong fundraising project is mainly oriented to PCB in the fields of high-speed communication, automobile electronics, etc. At present, the system certification has been completed, and it enters the stage of customer certification. A small amount of production capacity will be released by the end of the year.The raising and investment project in wuxi is mainly oriented to IC board.

4. The rapid increase of 2018H1 inventory index is mainly due to the increase caused by the development of new customers.

5. Reasons for the decrease of operating cash flow in 2018H1: mainly affected by factoring and increased occupation of operating assets.

6. Reasons for the large year-on-year increase in employee compensation in 2018H1: the increase in new employees in nantong base, the increase in labor costs in shenzhen and the provision of annual performance incentives for employees in the first half of the year.

7. At present, 5G communication board is in the development stage: at present, the whole 5G is still in the development stage.It is generally believed in the market that the national 5G commercial plan is in 2020, and the volume is expected to be gradually released in the second half of 2019.

8. The company is mainly involved in the 5G field of products: base station, large-size backplane, antenna and other aspects.

9. Whether the production lines of 4G and 5G products can be Shared: part of the production lines of 4G and 5G products can be Shared after technical transformation. At present, the company has invested in this aspect;Some production lines cannot match due to changes in 5G product size and other aspects, and new equipment needs to be added.

10. How much growth is expected in the market space of 5G compared with 4G? From the base station level, it is generally estimated in the industry that the number of 5G acer base stations will reach 1.2 to 1.5 times of 4G.At the terminal level, 5G application scenarios will be richer than 4G.

11. Current capacity utilization rate in wuxi: at present, there is no large new capacity in wuxi production base, and the capacity utilization rate is in a full state. However, with the implementation of product structure adjustment and technical reform, the output has been improved.

12. The proportion of MEMS in encapsulated substrate: over 50%.

13. Cycle of board certification: it takes 1 to 2 years for the client certification, and the new production line needs to be re-certified.Some reserve customers have entered into cooperation, transfer will be relatively fast.

14. How the price of upstream copper clad plates has changed since this year: slightly higher than the same period last year, but less obvious.No price increase in recent two months.

15. Yield: the product type of the company is complex, and the yield varies greatly due to different materials, processes and technical difficulties of different products.

16. Whether the tightening of environmental protection will bring pressure to the company: the company has invested heavily in environmental protection in the early stage, but it has not been affected greatly at present, but the processing cost will increase.

17. The company believes that barriers exist in the PCB communication field: there are mainly technical barriers and customer barriers.

In terms of technology, PCB products in the communication field are relatively difficult on average. As the 5G era approaches, the complexity and integration level of products are expected to be further improved, and the proportion of PCB products using special materials will also increase. Therefore, higher requirements will be put forward for the technical maturity and integration ability of manufacturers.

On the customer side, due to the downstream customers in the communication field, especially the large customers, there is usually a very strict qualification certification system for suppliers, which usually requires a longer period.In order to ensure stable and controllable quality, customers generally tend to choose to maintain long-term large-scale cooperation with certified PCB manufacturers, and there are some obstacles for new manufacturers to enter.